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Stock building for festive sales pushes collection from Goods & Services Tax (GST) in the month of October from September. Total collection stood ₹ 95,000 crore plus which is 3.76 per cent higher than sequential month --September -- collection.
However, this October’s collection is 5.2 per cent less than October 2018. During April-October, 2019 vis-à-vis 2018, the domestic component has shown 6.74 per cent growth while the GST on imports has shown negative growth and the total collection has grown by 3.38 per cent. Also, present collection is lower than Government’s expectation of Rs one lakh crore plus.
Consumer spending
Commenting on the present collection, M S Mani, Partner at Deloitte India, said that the trend of lower than expected GST collections continuing in a festive month is possibly reflective of the slowdown in the economy. “Since GST is a consumption tax, lower collections during the past few months are possibly indicative of the decline in consumer spending,” he said.
However, Abhishek Jain, Tax Partner with EY seems to be slightly optimistic. "With possibly a general demand slowdown in September, the GST collections were comparatively lower than expectations. With festivities in October, these numbers should witness a rise and meet expectations in the coming month," he said.
According to a Finance Ministry statement, the gross GST revenue collected in the month of October, 2019 is ₹ 95,380 crore. Out of this CGST (Central Goods & Services Tax) contributed ₹ 17,582 crore, while SGST (State Goods & Services Tax) has a share of ₹ 23,674 crore and IGST (Integrated Goods & Services Tax) contributed ₹ 46,517 crore (including ₹ 21,446 crore collected on imports). Collection through cess was ₹ 7,607 crore (including ₹ 774 crore collected on imports).
The total number of GSTR 3B Returns filed for the month of September up to October 31 is 73.83 lakh.
The government has settled ₹ 20,642 crore to CGST and ₹ 13,971 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of October, 2019 is ₹ 38,224 crore for CGST and ₹ 37,645 crore for the SGST.
GST collection (₹ crore)
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